China will channel more fiscal funds and explore innovative financing mechanisms to accelerate urban renewal projects, the Ministry of Finance said on Tuesday.

"China will expand the areas eligible for funding from local government special-purpose bonds and increasing the use of these bonds as project capital, providing greater financial resources to support urban renewal initiatives," Guo Fangming, director of the ministry's economic construction department, told a news conference.

The government will also leverage the catalytic role of policy-backed financial institutions. These institutions are encouraged to provide support for qualifying urban renewal projects, as long as the risk is manageable and the financial sustainability is ensured, Guo added.

Guo noted that dedicated efforts will be made to foster a new investment and financing model that brings together the government, the market, and various stakeholders, laying the groundwork for a more sustainable approach to urban renewal.

In particular, the private sector will be encouraged to participate in infrastructure and public utility concessions, Guo said.

Days before the meeting, the general offices of the Communist Party of China Central Committee and the State Council unveiled on Thursday a guideline designed to achieve key progress in the country's urban renewal campaign by 2030.

The guideline aims to improve safety conditions, enhance service efficiency, elevate living environments, develop business models, and preserve cultural heritage.